Companies must avoid measures that would impact on customer relationships during the recession, the Institute of Customer Service (ICS) has warned.

The group's chief executive David Parsons said the current climate made it all the more important to listen to customers and meet their expectations.

"It would be naive to argue that such measures should never include saving costs but organisations should resist taking actions that will have a detrimental effect both on the quality of service and the strength of their relationships with customers," he told the ICS annual conference.

He added that employers should also avoid cutting staff at the point of customer contact or ignore existing customers to focus on winning new business.

"Organisations with the courage and conviction to avoid falling into the old trap of slash and burn are the ones that will weather the storm most successfully by retaining their customers," he added.

"They are also the ones that will be in the best position to take advantage of the upturn when it comes."